Aircraft Loan Rates: Guide to Financing Your Aircraft

Single-engine airplanes can run anywhere from $15,000 to $100,000. Private jets can range from $2 million to $500 million. You likely don’t need us to tell you how expensive an airplane is, but if you’re interested in buying one, you might be wondering how to go about paying for it. You can always pay cash for one, but if you don’t have an extra $100,000 or so just sitting in the bank, the better option is to finance the aircraft. In this post, we’ll discuss how to get an aircraft loan , where to get an aircraft loan, and the going interest rate on such a loan. Here’s a closer look:

You can get a loan for an aircraft in a few different ways. You can reach out to your local bank or credit union to see if they offer aircraft loans or you can look to work with a broker. Most banks don’t have a lot of experience with aircraft loans, but depending on the amount that you’re financing, you still may be able to work with it to finance the plane. There are also specialty lenders that help pilots finance airplanes. Many of these lenders are members of credible associations, such as the National Aircraft Finance Association.

Brokers tend to have more experience in financing certain properties, such as airplanes. They can help buyers make more informed decisions by running history checks on aircraft and serving as an advisor of sorts prior to the purchase. They can also help determine if the aircraft incurred damage, how and by who it was fixed, and more.

Like anything, interest rates tend to depend on factors such as the buyer’s credit score, the current economic climate, down payment amount, and even the type of aircraft that’s being financed. Depending on who you finance with and the intangibles that we listed above, interest rates can range from 4 percent to upwards of 7 percent on a 20-year loan. Twenty-year loans tend to be the norm when financing an aircraft.

For more information on how to get an aircraft loan, contact us today.